Barbados??? vision of becoming the international financial wealth management centre of choice in the western hemisphere is now one step closer to reality.
That is the view of International Business Minister, Donville Inniss, who this morning applauded the Barbados Stock Exchange (BSE) for launching the International Securities Market (ISM), saying that it was in sync with the futuristic view which his Ministry had articulated as a goal for the development of the international business and financial services sector.
Delivering the feature address at the launch of the ISM, at the Hilton Barbados, Mr. Inniss pointed out that the activation of the ISM and its attendant rules spoke to the issue of the reduction of systemic risk.
In the context of the BSE, he explained that an ISM was defined as a market for the listing and trading of securities of issuers which might or might not be incorporated in Barbados, which would otherwise be listed and traded on other exchanges around the world.
Mr. Inniss also shared with those gathered that it was anticipated that participants in the ISM, which was likely to be international offshore banks and international business companies, would be ???regulated??? by the BSE for their actions and obligations under the rules of the ISM. He stated that these companies would continue to be subjected to prudential regulation by the Central Bank of Barbados.
He said: ???They would also continue to be regulated by the Financial Services Commission for take-overs, insider trading and market manipulation. This would enable the BSE to ensure a strong regulatory focus for the ISM which is absent in many less regulated offshore international centres.???
While commending the CEO and General Manager of the Stock Exchange, Mr. Marlon Yarde and his team for piloting this initiative, the Business Minister made it clear that the work was not fully completed and noted that, ??????we must continue to innovate whilst ensuring that new entities meet and operate at their fullest potential.???
???As these products are activated here, that have the immediate impact of placing Barbados on the same or rather equal footing as many of our competitor jurisdictions such as the Bermuda Stock Exchange, and the Cayman Stock Exchange. We must therefore be aware that flexibility is a crucial component in the formulation of a successful matrix of products, the provision of services and legislation,??? he contended.